'Greedy, greedy cash grab': Short-term rental operator decries new regulations proposed by city

The city is considering new rules and restrictions to regulate short-term rentals, including Airbnbs. It is welcome news for the hotel industry, but the association representing short-term rental operators is calling it a 'greedy cash grab.'

A report at city hall is proposing a tax and licensing regime and limits on how many rentals can be operated. This after some say the unregulated industry has caused headaches for neighbours.

"Right now it is the wild west, there is nothing stopping your neighbour or anyone putting up an Airbnb," Michael Juce, the president and CEO of the Manitoba Hotel Association, told CTV News.

The report recommends taxing the rentals and charging a licensing fee to operators.

If approved the five per cent accommodation tax would apply, as it does now on hotel rooms, with the aim of raising $750,000 a year. On top of that, a licence per property would be required with annual costs ranging from $260 to $4,000 depending on the number of rooms and platform listings.

With 904 licences projected, the city estimates it would take in $556,000 per year.

The money would offset costs for inspections and enforcement of health and safety standards.

The hotel industry has been lobbying for the changes, arguing these rules level out the playing field.

"I know some people say, 'Go with Airbnb because it's cheaper,'" Juce said. "Well, they're not paying the same taxes and fees, there is no licensing requirement now in Winnipeg, so we're very pleased to see these come forward."

Melanie Mitchell runs three Airbnbs in Winnipeg and represents the province's short-term rental association. She says the new licensing fees will cost her $2,600 a year.

"That cuts into the bottom line harshly," Mitchell told CTV News. "It is the worst possible time to be doing such a greedy, greedy cash grab."

The new bylaw would also restrict operators from running more than four properties.

Mitchell said the limit plus the new licensing costs, which are high compared to other jurisdictions, could put some of her colleagues out of business.

"There's a limit to how much you can pass on to the consumer and still stay competitive," she said.

The mayor's executive policy committee will debate this next week.